Why its stock, along with Nvidia, should get a boost from the AI boom, too

Nvidia (NVDA) isn’t the only company that has benefited from the AI boom. Other chip companies are joining in on the fun, Qualcomm (QCOM) SVP of Product Management, Ziad Asghar, told Yahoo Finance Live (video above).

“This generative AI opportunity is just amazing for Qualcomm,” said Asghar, who focuses on AI. “You have to understand that this is how we’re able to bring all of these experiences onto the devices that are in people’s hands.”

Nvidia has clearly been the poster child among chip makers when it comes to the frenzy surrounding AI. (Its Nvidia’s shares have climbed 167% year-to-date.) Conversely, Qualcomm’s stock is down about 3%. Asghar said that the market isn’t thinking about Qualcomm in the way it should be: the company’s products will enable far more widespread use of AI-powered applications—and its stock price should reflect that.

“We can actually bring all these [AI] experiences to the edge devices, to your PCs, to XR products, to smartphones, to IoT products,” he said. “That’s really the amazing opportunity for Qualcomm and we believe we have some unique differentiated technology that sets us apart from everybody else in this space.”

A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration

An amazing opportunity? A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. (REUTERS/Dado Ruvic/Illustration)

‘A seminal moment’

Asghar’s case is this: Qualcomm’s ability to power apps and experiences on devices more efficiently will power the widespread dissemination of AI.

“Our pedigree is about doing more processing at the lowest power possible,” he said. “That’s precisely what we’re able to do with AI too, essentially on a device that’s not plugged – whereas some of our other competitors run it on graphics engines that takes hundreds of watts of power, we literally run the same experiences with milliwatts of power.”

Ultimately, he said, the AI boom is bigger than Nvidia or Qualcomm.

“I think this is a seminal moment in our industry because it really changes the way we interact with our products, with our devices,” said Asghar. “This is not one of those things that’s kind of following the hype curve. This is actually an example where we have customers coming up to us today and saying, ‘I want to run these use cases on the device.'”

Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.

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